O2 reveals fixed-line ambitions

O2, the mobile phone business spun out of BT, is considering a move into the UK fixed-line market in a bid to capitalise on opportunities presented by the convergence of mobile, landline and broadband.

Spainð# Telefãnica last year bought O2 and gave the UK operator control of its business in Germany and of Cesky Telekom in the Czech Republic, both of which combine mobile units with a presence in consumer broadband.

ðóonvergence is something that customers will want, and weðl be learning from our experiences in the Czech Republic and Germany and doing similarly in the rest of our businesses,ðÐPeter Erksine, chief executive, said on a conference call following first-quarter results from Telefãnica.

A spokesman for the company said that O2 could build out its own fixed-line network, acquire a network by buying another digital subscriber line (DSL) company or could ð iggy-backðÐby buying capacity from an existing wholesale provider.

All three options remained open and no time limit had been set, the spokesman added.

The announcement comes a month after Vodafone, the UKð# mobile phone carrier, made a strategic U-turn and signalled a push into fixed-line services.

But Vodafone played down the idea that it might acquire fixed-line operators, following the creation of a ðew businesses and innovationðÐdivision responsible for finding revenues from new ðonvergedðÐservices emerging from internet technology.

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